Update on Short Selling Restrictions

As a result of market disruption caused by the COVID-19 pandemic, the regulatory authorities of certain countries in Europe and Asia issued short selling restrictions. The European restrictions have expired, but the Asian restrictions are still in place. Below, we summarize the situation as at June 30, 2020.

Europe

The following countries in Europe imposed short selling restrictions from March 18, 2020 to May 18, 2020: 

• Austrian Financial Market Authority (FMA)
• Belgian Financial Services and Markets Authority (FMSA)
• French Financial Markets Authority (AMF)
• Greek Hellenic Capital Market Commission (HCMC)
• Italian National Commission for Companies and the Stock Exchange (CONSOB)
• Spanish National Securities Markets Commission (CNMV)

Asia

The following countries in Asia imposed short selling restrictions, which are still in place and are summarized in the table below:

• South Korean Financial Services Commission (FSC)
• Indonesian Stock Exchange (IDX)
• Thailand Stock Exchange (SET)

Short Position Notification

On March 16, 2020 the European Securities and Markets Authority (ESMA) temporarily amended the threshold for notifying net short positions to Competent Authorities under the Short Selling Regulation from 0.2% of issued share capital to 0.1%. This measure was originally in force until June 16, and was renewed from June 17, 2020 for a further three months until September 17, 2020. Read the FCA announcement  here.

Duff & Phelps has wide experience in short selling and have worked with a number of firms to assist and advise on this area. If you need any help in relation to short selling or have any questions on the above, please feel free to contact us.